Sky Harbour Secures 4.73% Fixed Rate Through $200 Million J.P. Morgan Interest Rate Swap, Strengthens Financial Position Ahead of Investor Conferences
Sky Harbour Group Corporation, a leading aviation infrastructure developer pioneering the Home Base Operator (HBO) network for business aircraft across the United States, today announced that it has executed a floating-to-fixed interest rate swap agreement with an affiliate of JPMorgan Chase Bank, N.A. (“J.P. Morgan”).
This strategic five-year swap converts Sky Harbour’s floating interest exposure on its $200 million tax-exempt warehouse facility, held under Sky Harbour Capital II LLC, to a fixed rate of 4.73%. The transaction, governed under a newly established ISDA agreement without a Credit Support Annex (CSA), underscores the Company’s proactive approach to managing its cost of capital and mitigating exposure to interest rate volatility.
Strategic Financial Positioning Through Interest Rate Management
The new swap marks an important financial milestone for Sky Harbour as it continues scaling its nationwide infrastructure platform. By locking in a predictable and historically attractive rate environment, the Company has effectively insulated its near- to medium-term borrowing costs from potential fluctuations in benchmark interest rates.
Chief Financial Officer Francisco Gonzalez explained that the decision to execute this swap was informed by both current macroeconomic indicators and Sky Harbour’s growth trajectory. “We took advantage of the recent and expected decline in interest rates and the inverted yield environment to convert our future floating interest exposure into a fixed rate structure,” Gonzalez said. “This transaction allows us to lock in an attractive cost of funding—4.73%—for the next five years, a level that compares favorably to the 5.60% floating rate that prevailed at the time we entered into the J.P. Morgan facility.”
He further emphasized that this step enhances the predictability of Sky Harbour’s financing structure as it moves into an accelerated phase of portfolio expansion. “As we execute leases across our growing network of campuses, we remain firmly on track to achieve our goal of having operating cash flow from our portfolio fully cover our corporate SG&A by the end of the year,” Gonzalez added.
Operational Expansion and 2025 Growth Outlook
Sky Harbour also reaffirmed its 2025 financial and operational guidance, reflecting strong execution and continued confidence in its business model. The Company expects to:
- Secure five new airport development agreements by year-end, expanding its national footprint to 23 airports in operation or under active development.
- Achieve operating cash flow (or adjusted EBITDA) breakeven on a run-rate basis by the end of 2025.
This growth outlook builds on Sky Harbour’s successful development model, which focuses on acquiring long-term ground leases at key business aviation airports and developing purpose-built hangar campuses designed for private aircraft owners and operators. Each campus offers customizable, state-of-the-art facilities and a service experience tailored to the needs of corporate flight departments, fractional operators, and high-net-worth individuals seeking control and convenience in their aviation operations.
Chief Executive Officer Tal Keinan highlighted that the Company’s financial and operational momentum is translating into meaningful market leadership. “Sky Harbour continues to seek increasingly efficient financing to fund its accelerating growth,” Keinan said. “Our site acquisition performance remains on plan, and development efficiency continues to improve in both pace and cost. Leasing activity across our network is experiencing a quantum step-up as more aircraft owners and operators recognize the differentiated value of the Sky Harbour HBO model.”
Keinan further noted that the Company’s strategy remains centered on operational excellence and customer experience. “We continue refining the Sky Harbour service and operations offering with the goal of further differentiating the HBO value proposition. We wish to thank J.P. Morgan for their innovative approach and trust in Sky Harbour’s execution.”
Upcoming Investor Engagements
To reinforce transparency and expand investor engagement, Sky Harbour announced its participation in two upcoming in-person investor conferences this month:
- LD Micro Main Event XIX — to be held at the Hotel del Coronado in San Diego, California, on October 20–21, 2025.
- Maxim Growth Summit — taking place at the Hard Rock Hotel in New York City, on October 22–23, 2025.
These events will provide institutional investors, analysts, and stakeholders with the opportunity to engage directly with the Sky Harbour management team and gain deeper insights into the Company’s capital strategy, development progress, and long-term vision for transforming business aviation infrastructure across North America.
Building the Nation’s First Home Base Operator Network
Sky Harbour’s HBO model represents a paradigm shift in how business aircraft owners and operators base and manage their aircraft. Unlike traditional Fixed Base Operators (FBOs) that focus primarily on transient traffic and third-party fueling or services, Sky Harbour’s model provides dedicated, customizable home basing campuses designed for aircraft owners seeking privacy, operational control, and premium facilities.
Each Sky Harbour campus features climate-controlled private hangars, pilot and crew amenities, office space, and direct airfield access—all designed to reduce repositioning costs, improve asset security, and enhance operational efficiency. The Company’s expanding network currently includes developments at key locations such as Miami Opa-Locka, Houston Ellington, Nashville, Phoenix, Denver, and Dallas, with new projects under negotiation at several additional airports.
The strategic advantage of this model lies in its recurring long-term lease revenues, capital-efficient financing structures, and scalability across high-demand aviation hubs. By locking in lower long-term financing rates such as the recent 4.73% fixed rate, Sky Harbour strengthens its balance sheet resilience while continuing to expand at pace.
Financial and Legal Advisors
Sky Harbour was advised by Greenberg Traurig LLP as swap counsel and Mohanty Gargiulo LLC as swap advisor for the J.P. Morgan interest rate swap transaction. Both firms have supported the Company’s recent capital market initiatives and have played a key role in structuring innovative, aviation-focused financial instruments that align with Sky Harbour’s infrastructure growth objectives.
A Strengthened Platform for Sustainable Growth
The execution of the five-year fixed-rate swap not only reflects prudent financial management but also reinforces investor confidence in Sky Harbour’s long-term strategy. The move positions the Company to navigate shifting macroeconomic dynamics—such as fluctuating interest rates and evolving capital market conditions—while sustaining its mission to redefine business aviation real estate through scalable, owner-centric solutions.
By stabilizing borrowing costs and maintaining growth momentum across multiple development fronts, Sky Harbour continues to demonstrate financial discipline, operational agility, and industry leadership. The Company’s management team remains focused on achieving cash flow breakeven by year-end and delivering durable shareholder value through disciplined expansion, capital efficiency, and customer-focused innovation.
Sky Harbour Group Corporation (NYSE: SKYH) is an aviation infrastructure company dedicated to building the first nationwide network of Home Base Operator (HBO) campuses for business aircraft. By developing and leasing state-of-the-art hangar facilities designed specifically for private and corporate aircraft owners, Sky Harbour provides a superior home-basing solution that optimizes efficiency, convenience, and asset protection.
The Company’s scalable, capital-efficient model supports long-term growth and recurring revenue streams while delivering a differentiated experience within the business aviation ecosystem. Sky Harbour is headquartered in West Harrison, New York.
This press release contains forward-looking statements within the meaning of applicable securities laws. These statements include, but are not limited to, expectations regarding future airport developments, operating cash flow performance, interest rate outcomes, and growth projections. Forward-looking statements are based on current assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. Sky Harbour undertakes no obligation to update these statements except as required by law.